Expat rates: keep an eye on what interest you are getting

Often the rates on old accounts are poor, yet savers still leave their money
in these deals
.

After the recent falls in fixed-rate savings accounts, it is now the turn of variable-rate deals to take a tumble.

Nationwide International has sliced the rate on its Bonus Access account for the third time this year – yet it remains the best easy-access account, even after this latest cut.

The new issue of Bonus Access, number four, is paying 1.4pc on balances of £5,000 to £24,999 and 1.9pc on £25,000 or more.

The previous issue paid 1.5pc to 2.1pc and was on sale for less than a month. Issue 2 was on sale for six months and paid 1.95pc to 2.5pc and paid 0.1 of a point more than the original issue which first went on sale in September 2011.

Nationwide has also cut rates on its Bonus 1+ account and Bonus 95 account.

Nationwide International is launching new issues of Bonus Access, Bonus 1+ and Bonus 95. The new issue of Bonus 1+ pays 1.6pc on the lower tier of £5,000 plus and 2.1pc on the higher £25,000 and over. The previous issue paid 1.75pc or 2.3pc and was again on sale for less than a month. The first issue of Bonus 1+ paid 2pc to 2.55pc.

On Bonus 95, the new issue pays 1.7pc on £5,000 plus or 2.2pc on £25,000 or more. The previous issue paid 1.85pc or 2.4pc and as with the others was on sale for less than a month. The first issue of Bonus 95 went on sale in September 2011 and paid 2.1pc or 2.65pc.

Even after the latest cuts, these deals are probably the best on offer, especially as savers can opt for monthly income.

The Bonus 95 account, say statisticians Moneyfacts, is the current market leader for monthly interest accounts.

Philip Dunne, managing director of Nationwide International, said: “Nationwide International continues to offer some of the highest rates of interest in the offshore market and these latest issues of our Bonus accounts are no exception.”

Alliance & Leicester International has also changed its variable rate options and replaced two accounts with new lower rate deals.

It has withdrawn its Select Access (Issue 2) and eSaver Access (Issue 2) and has replaced them with two new accounts, eSaver (Issue 1) and Flexible Saver (Issue 1).

The new eSaver account pays 1.5pc on £5,000 plus including a one percentage point bonus. Flexible Saver pays 1pc on £5,000 plus. These rates are a long way below those paid on the now-withdrawn account: both Select Access (Issue 2) and eSaver Access (Issue 2) paid 2.05pc.

While savers in both the Alliance & Leicester and the Nationwide accounts will be better sticking with the now-closed previous offers, not all offshore savings accounts that have been withdrawn from sale are worth sticking with. Often the rates on offsale accounts are poor – yet many savers still leave their money in these deals.

For example, Alliance & Leicester International lists more than 50 offsale account rates on its website. Any savers who still have money in the Offshore 60 Plus are now earning only 0.3pc interest on their savings and on Offshore 120 Plus the rates currently paid are 0.35-0.6pc.

At Nationwide International, those who took out the Base Rate Tracker Premium Account, which was on sale between December 2010 and September 2011, are now earning just 0.25pc on their money, as this is the rate paid after the first year.

Past mergers and takeovers of other UK building societies has left Skipton International with some accounts previously run by other offshore banks. For example, there are a number of accounts which were originally run by Scarborough Channel Islands that are now paying just 0.25pc. It also has the Portman International Reserve Account, also paying 0.25pc, and a number of accounts which were originally run by Sun Bank Offshore paying the same low rate.